Political and economic instability overseas attract foreign property buyers to Singapore in Q2
In 2Q2015, Singapore’s property market saw a surge in number of foreign buyers, mainly from mainland China and Malaysia, snapping up 234 and 248 private homes respectively. It was also reported months ago that there were already signs of foreign property buyers splashing cash on Singapore high-end properties, with the penthouse sale at Le Nouvel Ardmore making the news headlines, and also Marina Bay Suites. Not only these, Leedon Residence have also seen healthy sales of late, transacting 14 units in July 2015 alone (ranging from S$2.3 million to S$7.48 million).
This increase in number were likely due to the political situation in Malaysia, and the weakening currency values (Malaysia Ringgit and Chinese Renminbi) for both countries. Therefore, it seems like a logical and sensible move for these prospects to leverage on Singapore’s GDP performance and resilience of the Singapore currency by investing or preserving their wealth here. According to the reports from DTZ Research and the Urban Redevelopment Authority of Singapore (URA), foreign property buyers from China and Malaysia have accounted for close to 50% of all the Singapore property purchases made by non-Singaporeans (1,017 in total) during 2Q2015. This figure reported is approximately 60% more than what was records in 1Q2015, but it’s still lower than the total transactions clocked in 2Q2014 (which was 1,298 units).
It was mentioned that property buyers from China were probably more active due to the plunge of the stock market in China, which have triggered an increasing level of uncertainty in the nation’s financial resistance of some degree and security, thus making Singapore appear a safe house, especially the high-net-worth individuals. Moreover, if the devaluation of reminibi continues, it is expected to be a catalyst to more Chinese buying Singapore properties.
Al Jazeera’s coverage on foreign wealth in Singapore
However, there are more pressimistic signs emerging from Indonesia and Malaysia as their currencies continues to depreciate against the US dollar, while the Singapore dollar could possibly be ranked in Asia as one of the most resislient currencies. If this stays true, Singapore should go on to attract more funds following out of these nations and Singapore’s high-end residential market will possibly benefit the most as property prices in this segment have recently declined to an enticing level. Another point to note is that this property segment have also all along been seeing the biggest group of Indonesian, Chinese and Malaysian buyers.